The Table Below Is Taken from the Big Mac Index

question 63

Essay

The table below is taken from the Big Mac Index.After reviewing it, answer the questions listed below.

What is meant by PPP? According to this table, which is the most overvalued and undervalued currency? Fill the last column showing under or over valuation of local currencies.Give reasons for your answer.What is the primary drawback of this index? How can this be used?

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Definitions:

Limited Partner

An owner of a limited partnership who has no right to manage the business but who possesses liability limited to his capital contribution to the business.

Manage

The act of directing, controlling, and organizing the activities or operations of an entity or group.

Sole Proprietor

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Deduct Business Losses

The process of reducing taxable income by the amount of losses incurred by a business during a financial period.